Regulator shows intolerance as it suspends gold miner after a debut surge of 208.56pc
Mainland regulators signalled a crackdown on wild speculation on the nation's stock markets, suspending the trading debut of Zijin Mining Group yesterday after its shares soared as much as 208.56 per cent.
Beijing is becoming increasingly intolerant of investors taking advantage of new listings to make quick profits - windfalls that tend to feed market volatility and create unhealthy asset bubbles. Regulators also restricted gains in two new listings in Shenzhen yesterday.
The intervention comes in the same week that regulators boosted the flagging market by cutting the stamp duty. Beijing now appears to be attempting a balancing act, moving to prevent both excessive declines and gains in equities.
The Shanghai Stock Exchange suspended trading of Zijin's shares for 30 minutes yesterday afternoon after the stock soared to 22 yuan from its offer price of 7.13 yuan.
It resumed trading five minutes before the close, ending the day at 13.92 yuan, still 95.23 per cent higher than its offer price. That made Zijin, one of the mainland's top three gold miners, the best-performing new issue on the exchange this year.
It was the first such intervention by the Shanghai exchange in a big listing since China launched a flood of share offerings two years ago.